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Doximity, Inc. (DOCS)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY2026 delivered clean beats and margin expansion: revenue $145.9M (+15% YoY) and non-GAAP diluted EPS $0.36, with adjusted EBITDA $79.8M and 54.7% margin; FY26 guidance raised for both revenue ($628–$636M) and adjusted EBITDA ($341–$349M) .
  • Strong upsell season across workflow and news modules; SMB bookings grew >100% YoY via client portal; net revenue retention 118% overall and 119% for top 20 customers .
  • AI suite is the growth vector: AI usage up 5x YoY; Doximity AI Scribe launched with >75% weekly retention; acquisition of Pathway adds leading clinical AI corpus (USMLE 96%) and modest OpEx impact (~$2M FY26) .
  • Near-term catalysts: sustained beat/raise, accelerating AI engagement, portal-driven SMB momentum; management remains cautious on H2 pacing given policy uncertainty, but sees potential upside if budgets remain stable .

What Went Well and What Went Wrong

What Went Well

  • Broad-based strength: workflow and newsfeed modules drove upsell; SMB bookings growth >100% YoY in Q1 via agency partners on the client portal .
  • AI engagement and product launches: AI suite usage up 5x YoY; Doximity AI Scribe launched with >75% weekly retention, adding a sticky workflow tool; Pathway acquisition integrated quickly into Doximity GPT .
  • Profitability and cash generation: adjusted EBITDA +21% YoY to $79.8M (54.7% margin); free cash flow $60.1M (+52% YoY); share repurchases of $122.3M at ~$53.99 average price .

What Went Wrong

  • GAAP net income margin stepped down vs Q4 due to investment cadence (36.5% in Q1 vs 45.2% in Q4) and rising SBC as AI investments ramp; SBC expected to trend to high-teens % of revenue in FY26–FY27 .
  • Guidance tempered for H2 despite strong Q1, reflecting ongoing policy uncertainty affecting pharma and health systems; management is cautious on dollars not yet booked .
  • Health system exposure to policy remains an overhang; while performance improved, management does not assume outsized contribution in guidance given uncertainty .

Financial Results

MetricQ3 FY2025 (Dec 31, 2024)Q4 FY2025 (Mar 31, 2025)Q1 FY2026 (Jun 30, 2025)
Revenue ($USD Millions)$168.6 $138.3 $145.9
GAAP Diluted EPS ($)$0.37 $0.31 $0.27
Non-GAAP Diluted EPS ($)$0.45 $0.38 $0.36
Adjusted EBITDA ($USD Millions)$102.0 $69.7 $79.8
Adjusted EBITDA Margin (%)60.5% 50.4% 54.7%
GAAP Gross Margin (%)91.6% 89.5% 89.2%
GAAP Net Income Margin (%)44.6% 45.2% 36.5%
Operating Cash Flow ($USD Millions)$65.2 $98.5 $62.1
Free Cash Flow ($USD Millions)$63.4 $97.0 $60.1

KPIs

KPIQ3 FY2025Q4 FY2025Q1 FY2026
Net Revenue Retention (TTM)——118% overall; 119% top 20 customers
Customers ≥$500k TTM——120 (vs 103 YoY)
Unique Active Prescribers – Workflow610,000+ —630,000
Newsfeed Quarterly Active Prescribers>1,000,000 —>1,000,000 (record highs)
AI Suite EngagementAI tools grew fastest —Usage up 5x YoY

Estimate Comparison (S&P Global consensus)

MetricQ3 FY2025 ActualQ3 FY2025 Consensus*SurpriseQ4 FY2025 ActualQ4 FY2025 Consensus*SurpriseQ1 FY2026 ActualQ1 FY2026 Consensus*Surprise
Revenue ($USD Millions)$168.6 $152.8*+$15.8$138.3 $134.0*+$4.3$145.9 $139.6*+$6.3
Non-GAAP Diluted EPS ($)$0.45 $0.336*+$0.114$0.38 $0.273*+$0.107$0.36 $0.307*+$0.053

Values with asterisks (*) retrieved from S&P Global.

Notes: EBITDA consensus from S&P Global is not directly comparable to Doximity’s adjusted EBITDA (company-defined); we therefore anchor on revenue and EPS for beat/miss context .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 FY2026—$157–$158M New
Adjusted EBITDAQ2 FY2026—$87–$88M (≈56% margin) New
RevenueFY2026$619–$631M $628–$636M Raised
Adjusted EBITDAFY2026$333–$345M $341–$349M Raised
Cash Tax RateFY2026—~10–15% cash tax rate New
OpEx Impact (Pathway)FY2026—~+$2M non-GAAP expense New
Stock-Based Compensation (% of Revenue)FY2026–FY2027—High-teens; then mid-teens starting 2028 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY2025, Q4 FY2025)Current Period (Q1 FY2026)Trend
AI/technology initiativesAI tools grew fastest; launch momentum AI usage +5x YoY; Scribe launch; Pathway corpus integrated into GPT Accelerating
Product performance (workflow/newsfeed)610K+ workflow users; >1M newsfeed prescribers 630K workflow users; record highs across newsfeed Strengthening
SMB/portal monetization—SMB bookings +100% YoY; >12 agency partners; $5M+ business via portal Expanding
Health systems—17 of top 20 systems on enterprise; paid adoption for on-call scheduler Improving, cautious on policy
Regulatory/policy—Continued policy uncertainty; cautious H2 pacing Ongoing overhang
Capital allocation—$122.3M buybacks at ~$53.99; cash & securities $841M Active repurchases

Management Commentary

  • “We delivered $146,000,000 in revenue…15% year on year growth…adjusted EBITDA margin of 55%…better than expected Q1 and a nice start to our upsell season led by our new products and portal.” — CEO Jeff Tangney .
  • “We finished the quarter with a net revenue retention rate of 118%…top 20 at 119%…120 customers contributing at least $500,000 each…adjusted EBITDA margin was 55%…free cash flow up 52% YoY.” — CFO Anna Bryson .
  • “Over 75% of Scribe users returning each week…we’re thrilled to add another very sticky tool to our workflow suite.” — CEO Jeff Tangney .
  • “We recently closed our acquisition of Pathway for twenty six million dollars in cash and up to $37,000,000 in additional equity grants…non-GAAP expense impact just over $2,000,000 in fiscal twenty twenty six.” — CFO Anna Bryson .

Q&A Highlights

  • AI monetization path: Management sees AI suite following Dialer’s trajectory from free to enterprise monetization; Some clients already engaging; Pathway’s $300/year pricing validates willingness to pay .
  • Portal-driven upsell and SMB momentum: Portal recommendations improved conversion and deal size; >12 agency partners; >$5M business generated; SMB bookings >100% YoY .
  • Health systems and enterprise: 17 of top 20 systems on enterprise; strong paid adoption of on-call scheduling; guidance does not assume outsized contribution due to policy uncertainty .
  • Cost dynamics of AI Scribe: Costs now “pennies per visit,” similar to Dialer; margin impact manageable at scale .
  • Visibility and contracting: Higher share of year under contract; more 12-month integrated programs starting January 1 improving visibility .

Estimates Context

  • Q1 FY2026 beat on both revenue and EPS versus S&P Global consensus: Revenue $145.9M vs $139.6M*, EPS (non-GAAP diluted) $0.36 vs $0.307*; prior two quarters also beat consensus on both metrics .
  • Implications: Street likely raises FY26 revenue/EPS estimates modestly; company’s raised FY26 revenue/EBITDA guide should support upward revisions. Note EBITDA comparisons require caution due to definitional differences between SPGI EBITDA and company’s adjusted EBITDA.
    Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Beat-and-raise quarter: Strong revenue/EPS beat and raised FY26 guide indicates robust demand across modules and cohorts .
  • AI-led engagement flywheel: Scribe and Doximity GPT/Pathway integration deepen stickiness; monetization optionality akin to Dialer over time .
  • Portal-driven SMB expansion: Rapid SMB bookings growth via agency partners broadens revenue base; supports durability into upsell season .
  • Margin durability with investment: Despite AI investment and higher SBC, adjusted EBITDA margin ~55% remains intact; FCF strong .
  • Policy risk managed: Guidance prudently embeds uncertainty; upside if budgets prove stable; health systems improving but kept conservative in outlook .
  • Capital allocation supportive: Active buybacks and ample liquidity ($841M) provide EPS support and flexibility for continued AI investment .
  • Near-term trading setup: Positive skew from beat/raise and AI catalysts; watch Q2 execution versus guidance ($157–$158M revenue; $87–$88M EBITDA) and any policy headlines impacting H2 pace .